2024 Global Digital Shopping index

Tuum Raises $26 Million Amid Banking’s Ongoing Digital Evolution

digital banking

Core banking platform Tuum has raised $26 million to expand to new parts of Europe.

The Estonian company’s Series B funding round, announced Tuesday (Feb. 6), will allow the company to target new territories in central and southern Europe and the Middle East, enhance its direct sales and marketing operations and form new managed service relationships. 

“The fundraise will also be used to deepen Tuum’s key competitive differentiators. The company will increase investment into its ‘smart migration’ capabilities, which are making complex core migrations possible in as little as two months,” the company said in a news release. 

Tuum also plans to refine its “Business Builder,” a platform for “significant customization through configuration, providing a compelling alternative to the generic ‘one size fits all’ or ‘toolbox’ approaches of other cloud-native cores,” the release said. 

Lastly, Tuum said it will invest in expanding its suite of modules and rich functionality, including accounts, lending, payments and card services, for the corporate and banking sectors.

“Everyone knows that banks need to replace their aging core banking systems if they are going to successfully adapt their business models for digital banking,” said Tuum CEO Myles Bertrand. “However, no core banking vendor has to date made core migration simple and predictable, which is what Tuum is now doing through a combination of smart migrations, a modular and functionality rich core, massive extensibility, and a broad ecosystem of partners.”

PYMMTS wrote last month that the continued digital transformation in the banking sector was on display in the earnings in some of America’s biggest lenders.

The PYMNTS Intelligence study Consumer Behaviors and Perceived Security Across Devices” found that nearly three-quarters of Generation Z respondents used their mobile banks to transact and satisfy their banking needs, followed by about two-thirds of millennials and more than 60% of Generation X consumers.

That could explain why 75% of households that bank with Bank of America were actively using that lender’s digital offerings. At the same time, the bank reported that it saw a record number of active digital banking users, up 5% year on year to 46 million. 

And at JPMorgan Chase, active mobile customers were up 8% to more than 53 million on an annual basis.

As Chief Financial Officer Jeremy Barnum said on an earnings call, “even though all of the businesses in various ways are investing in technology and spending money on it, the drivers are actually pretty consistent across the entire firm even though it’s really bottoms-up driven.”